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Suppose a firm with a value of $60 million has a bond outstanding with a face value of $45 million that matures in 3 years.

Suppose a firm with a value of $60 million has a bond outstanding with a face value of $45 million that matures in 3 years. the current interest rate is 7% and the volatility of the firm is 35% what is the probability that the firm will default on its debt if the expected return on the firm , , is 25% ?

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